A balance of payments crisis is unlikely in today’s Asia. Most countries have improved their current accounts and FX reserves. The rising debt load may however pose problems, although it nowadays is mainly local currency denominated.

Strong economic growth has diminished poverty in the region and will swell the ranks of the middle class. But corruption levels are high, China’s influence in the region is increasing and the dispute surrounding the South China Sea may generate stability risks.

Demographics will provide headwinds in the developed countries of APAC and China, and tailwinds in South Asia. While total factor productivity growth has fallen, the innovation outlook for the APAC region is still relatively favourable.

Strong institutions and policymaking support (potential) GDP growth, while the country’s small size and ageing pose challenges. Healthy balance sheets and a solid international creditor position reduce Singapore’s susceptibility to (global) shocks.

Strong institutions and effective policymaking support (potential) GDP growth, while the state’s small size and ageing pose challenges. Healthy balance sheets across the board and a solid international creditor position reduces Singapore’s susceptibility to shocks and financial crises.

Singapore’s recovery is expected to gather some steam but we cannot expect growth to be very high in a weak external environment. The outlook is clouded by significant downside risks from the external sector.

The Singaporean economy is slowing against the backdrop of weaker global growth and heightened global uncertainty. Key risks are a sharp and protracted downturn in large advanced economies and extreme financial stress spreading from the eurozone.

Singapore has very healthy public finances, strong net-creditor position, solid economic fundamentals, and a stable political environment. Having said that, the large size of the country’s banking sector combined with a huge dependence on global demand makes Singapore’s economy particularly vulnerable to external shocks.